119-hr526

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 526 Introduced in House

    (IH) ]

<DOC>

119th CONGRESS
 1st Session
 H. R. 526

 To amend the Mineral Leasing Act to make certain adjustments to the 
 royalty rates for leases for oil and gas extraction on Federal land, 
 and for other purposes.

_______________________________________________________________________

 IN THE HOUSE OF REPRESENTATIVES

 January 16, 2025

Mr. Ogles (for himself, Mr. Pfluger, Mr. Weber of Texas, Mr. Brecheen, 
 Ms. Hageman, Ms. Maloy, and Mr. Williams of Texas) introduced the 
 following bill; which was referred to the Committee on Natural 
 Resources

_______________________________________________________________________

 A BILL

 To amend the Mineral Leasing Act to make certain adjustments to the 
 royalty rates for leases for oil and gas extraction on Federal land, 
 and for other purposes.

 Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

 This Act may be cited as the ``Declaration of Energy Independence 
Act''.

SEC. 2. AMENDMENTS TO MINERAL LEASING ACT.

    (a) Onshore Oil and Gas Royalty Rates.--

    (1) Lease of oil and gas land.--

Section 17 of the Mineral 
 Leasing Act (30 U.S.C. 226) is amended--
        (A) by striking ``16\2/3\ percent'' each place it 
 appears and inserting ``12\1/2\ percent''; and
        (B) in subsection

    (b)

    (1)
        (A) , by striking ``or, in 
 the case of'' and all that follows through ``removed or 
 sold from the lease. The'' and inserting ``. The''.

    (2) Conditions for reinstatement.--

Section 31

    (e)

    (3) of the 
 Mineral Leasing Act (30 U.S.C. 188

    (e)

    (3) ) is amended by 
 striking ``20'' each place it appears and inserting ``16\2/
 3\''.

    (b) Oil and Gas Minimum Bid.--

Section 17

    (b) of the Mineral Leasing 
Act (30 U.S.C. 226

    (b) ) is amended--

    (1) in paragraph

    (1)
        (B) , by striking ``$10 per acre during 
 the 10-year period beginning on the date of enactment of the 
 Act titled `An Act to provide for reconciliation pursuant to 
 title II of S. Con. Res. 14''' and inserting ``$2 per acre for 
 a period of 2 years from the date of enactment of the Federal 
 Onshore Oil and Gas Leasing Reform Act of 1987''; and

    (2) in paragraph

    (2)
            (C) , by striking ``$10 per acre'' and 
 inserting ``$2 per acre''.
            (c) Fossil Fuel Rental Rates.--

    (1) Annual rentals.--

Section 17
            (d) of the Mineral Leasing 
 Act (30 U.S.C. 226
            (d) ) is amended by striking ``than $3 per 
 acre per year'' and all that follows through ``and $15 per acre 
 per year thereafter'' and inserting ``than $1.50 per acre per 
 year for the first through fifth years of the lease and not 
 less than $2 per acre per year for each year thereafter''.

    (2) Rentals in reinstated leases.--

Section 31

    (e)

    (2) of the 
 Mineral Leasing Act (30 U.S.C. 188

    (e)

    (2) ) is amended by 
 striking ``$20'' and inserting ``$10''.
            (d) Elimination of Fee for Expression of Interest.--

Section 17 of 
the Mineral Leasing Act (30 U.S.C. 226) is amended by striking 
subsection

    (q) .

    (e) Noncompetitive Leasing.--

Section 17 of the Mineral Leasing Act 
(30 U.S.C. 226) is amended--

    (1) in subsection

    (b) --
        (A) in paragraph

    (1)
        (A) --
            (i) by striking ``paragraph

    (2) '' and 
 inserting ``paragraphs

    (2) and

    (3) of this 
 subsection''; and
            (ii) by inserting ``Lands for which no bids 
 are received or for which the highest bid is 
 less than the national minimum acceptable bid 
 shall be offered promptly within 30 days for 
 leasing under subsection
            (c) of this section 
 and shall remain available for leasing for a 
 period of 2 years after the competitive lease 
 sale.'' after the period at the end; and
        (B) by adding at the end the following:
 ``

    (3)
        (A) If the United States held a vested future interest in a 
mineral estate that, immediately prior to becoming a vested present 
interest, was subject to a lease under which oil or gas was being 
produced, or had a well capable of producing, in paying quantities at 
an annual average production volume per well per day of either not more 
than 15 barrels per day of oil or condensate, or not more than 60,000 
cubic feet of gas, the holder of the lease may elect to continue the 
lease as a noncompetitive lease under subsection
            (c) (1) .
 ``
        (B) An election under this paragraph is effective--
 ``
            (i) in the case of an interest which vested after January 
 1, 1990, and on or before the date of enactment of this 
 paragraph, if the election is made before the date that is 1 
 year after the date of enactment of this paragraph;
 ``
            (ii) in the case of an interest which vests within 1 year 
 after the date of enactment of this paragraph, if the election 
 is made before the date that is 2 years after the date of 
 enactment of this paragraph; and
 ``
            (iii) in any case other than those described in clause
            (i) or
            (ii) , if the election is made prior to the interest 
 becoming a vested present interest.
 ``
            (C) Notwithstanding the consent requirement referenced in 

section 3 of the Mineral Leasing Act for Acquired Lands (30 U.S.C. 352), the 
Secretary shall issue a noncompetitive lease under subsection
            (c) (1) to 
a holder who makes an election under subparagraph
        (A) and who is 
qualified to hold a lease under this Act. Such lease shall be subject 
to all terms and conditions under this Act that are applicable to 
leases issued under subsection
            (c) (1) .
 ``
            (D) A lease issued pursuant to this paragraph shall continue so 
long as oil or gas continues to be produced in paying quantities.
 ``
        (E) This paragraph shall apply only to those lands under the 
administration of the Secretary of Agriculture where the United States 
acquired an interest in such lands pursuant to the Act of March 1, 1911 
(36 Stat. 961).'';

    (2) by striking subsection
            (c) and inserting the following:
 ``
            (c) (1) If the lands to be leased are not leased under subsection

    (b)

    (1) of this section or are not subject to competitive leasing under 
subsection

    (b)

    (2) of this section, the person first making application 
for the lease who is qualified to hold a lease under this Act shall be 
entitled to a lease of such lands without competitive bidding, upon 
payment of a non-refundable application fee of at least $75. A lease 
under this subsection shall be conditioned upon the payment of a 
royalty at a rate of 12.5 percent in amount or value of the production 
removed or sold from the lease. Leases shall be issued within 60 days 
of the date on which the Secretary identifies the first responsible 
qualified applicant.
 ``

    (2)
        (A) Lands
            (i) which were posted for sale under subsection

    (b)

    (1) of this section but for which no bids were received or for which 
the highest bid was less than the national minimum acceptable bid and
            (ii) for which, at the end of the period referred to in subsection

    (b)

    (1) of this section no lease has been issued and no lease 
application is pending under paragraph

    (1) of this subsection, shall 
again be available for leasing only in accordance with subsection

    (b)

    (1) of this section.
 ``
        (B) The land in any lease which is issued under paragraph

    (1) of 
this subsection or under subsection

    (b)

    (1) of this section which lease 
terminates, expires, is cancelled or is relinquished shall again be 
available for leasing only in accordance with subsection

    (b)

    (1) of this 
section.''; and

    (3) by striking subsection

    (e) and inserting the following:
 ``

    (e) Competitive and noncompetitive leases issued under this 
section shall be for a primary term of 10 years: Provided, however, 
That competitive leases issued in special tar sand areas shall also be 
for a primary term of ten years. Each such lease shall continue so long 
after its primary term as oil or gas is produced in paying quantities. 
Any lease issued under this section for land on which, or for which 
under an approved cooperative or unit plan of development or operation, 
actual drilling operations were commenced prior to the end of its 
primary term and are being diligently prosecuted at that time shall be 
extended for two years and so long thereafter as oil or gas is produced 
in paying quantities.''.

    (f) Conforming Amendments.--

Section 31 of the Mineral Leasing Act 
(30 U.S.C. 188) is amended--

    (1) in subsection
            (d) (1) , by inserting ``or 

section 17
            (c) of this Act'' after ``pursuant to 

section 17

    (b) '';

    (2) in subsection

    (e) --
        (A) in paragraph

    (2) --
            (i) by inserting ``either'' after ``rentals 
 and''; and
            (ii) by inserting ``or the inclusion in a 
 reinstated lease issued pursuant to the 
 provisions of 

section 17
            (c) of this Act of a 
 requirement that future rentals shall be at a 
 rate not less than $5 per acre per year, all'' 
 after ``per acre per year,''; and
        (B) in paragraph

    (3) --
            (i) by striking ``

    (3) payment'' and 
 inserting the following:
 ``

    (3)
        (A) payment''; and
            (ii) by adding at the end the following:
 ``
        (B) payment of back royalties and inclusion in a 
 reinstated lease issued pursuant to the provisions of 

section 17
            (c) of this Act of a requirement for future royalties at a 
 rate not less than 16\2/3\ percent: Provided, That royalty on 
 such reinstated lease shall be paid on all production removed 
 or sold from such lease subsequent to the cancellation or 
 termination of the original lease; and'';

    (3) by redesignating subsections

    (f) through
            (i) as 
 subsections

    (g) through

    (j) , respectively;

    (4) by inserting after subsection

    (e) the following:
 ``

    (f) Where an unpatented oil placer mining claim validly located 
prior to February 24, 1920, which has been or is currently producing or 
is capable of producing oil or gas, has been or is hereafter deemed 
conclusively abandoned for failure to file timely the required 
instruments or copies of instruments required by 

section 314 of the 
Federal Land Policy and Management Act of 1976 (43 U.S.C. 1744), and it 
is shown to the satisfaction of the Secretary that such failure was 
inadvertent, justifiable, or not due to lack of reasonable diligence on 
the part of the owner, the Secretary may issue, for the lands covered 
by the abandoned unpatented oil placer mining claim, a noncompetitive 
oil and gas lease, consistent with the provisions of 

section 17

    (e) of 
this Act, to be effective from the statutory date the claim was deemed 
conclusively abandoned. Issuance of such a lease shall be conditioned 
upon--
 ``

    (1) a petition for issuance of a noncompetitive oil and 
 gas lease, together with the required rental and royalty, 
 including back rental and royalty accruing from the statutory 
 date of abandonment of the oil placer mining claim, being filed 
 with the Secretary--
 ``
        (A) with respect to any claim deemed conclusively 
 abandoned on or before the date of enactment of the 
 Federal Oil and Gas Royalty Management Act of 1982, on 
 or before the one hundred and twentieth day after such 
 date of enactment, or
 ``
        (B) with respect to any claim deemed conclusively 
 abandoned after such date of enactment, on or before 
 the one hundred and twentieth day after final 
 notification by the Secretary or a court of competent 
 jurisdiction of the determination of the abandonment of 
 the oil placer mining claim;
 ``

    (2) a valid lease not having been issued affecting any of 
 the lands covered by the abandoned oil placer mining claim 
 prior to the filing of such petition: Provided, however, That 
 after the filing of a petition for issuance of a lease under 
 this subsection, the Secretary shall not issue any new lease 
 affecting any of the lands covered by such abandoned oil placer 
 mining claim for a reasonable period, as determined in 
 accordance with regulations issued by him;
 ``

    (3) a requirement in the lease for payment of rental, 
 including back rentals accruing from the statutory date of 
 abandonment of the oil placer mining claim, of not less than $5 
 per acre per year;
 ``

    (4) a requirement in the lease for payment of royalty on 
 production removed or sold from the oil placer mining claim, 
 including all royalty on production made subsequent to the 
 statutory date the claim was deemed conclusively abandoned, of 
 not less than 12\1/2\ percent; and
 ``

    (5) compliance with the notice and reimbursement of costs 
 provisions of paragraph

    (4) of subsection

    (e) but addressed to 
 the petition covering the conversion of an abandoned unpatented 
 oil placer mining claim to a noncompetitive oil and gas 
 lease.'';

    (5) in subsection

    (g) (as so redesignated)--
        (A) in paragraph

    (1) , by striking ``in the same 
 manner as the original lease issued pursuant to 

section 17'' and inserting ``as a competitive or a 
 noncompetitive oil and gas lease in the same manner as 
 the original lease issued pursuant to 

section 17

    (b) or 
 17
            (c) of this Act'';
        (B) by redesignating paragraphs

    (2) and

    (3) as 
 paragraphs

    (3) and

    (4) , respectively;
            (C) by inserting after paragraph

    (1) the following:
 ``

    (2) Except as otherwise provided in this section, the issuance of 
a lease in lieu of an abandoned patented oil placer mining claim shall 
be treated as a noncompetitive oil and gas lease issued pursuant to 

section 17
            (c) of this Act.''; and
            (D) in paragraph

    (3) (as so redesignated), by 
 inserting ``applicable to leases issued under 
 subsection 17
            (c) of this Act (30 U.S.C. 226
            (c) )'' after 
 ``this section,'';

    (6) in subsection

    (h) (as so redesignated), by striking 
 ``subsection
            (d) '' and inserting ``subsections
            (d) and

    (f) of 
 this section''; and

    (7) by striking subsection
            (i) (as so redesignated) and 
 inserting the following:
 ``
            (i) (1) In acting on a petition to issue a noncompetitive oil and 
gas lease, under subsection

    (f) of this section or in response to a 
request filed after issuance of such a lease, or both, the Secretary is 
authorized to reduce the royalty on such lease if in his judgment it is 
equitable to do so or the circumstances warrant such relief due to 
uneconomic or other circumstances which could cause undue hardship or 
premature termination of production.
 ``

    (2) In acting on a petition for reinstatement pursuant to 
subsection
            (d) of this section or in response to a request filed after 
reinstatement, or both, the Secretary is authorized to reduce the 
royalty in that reinstated lease on the entire leasehold or any tract 
or portion thereof segregated for royalty purposes if, in his judgment, 
there are uneconomic or other circumstances which could cause undue 
hardship or premature termination of production; or because of any 
written action of the United States, its agents or employees, which 
preceded, and was a major consideration in, the lessee's expenditure of 
funds to develop the property under the lease after the rent had become 
due and had not been paid; or if in the judgment of the Secretary it is 
equitable to do so for any reason.''.
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